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(Fox News)   Deep in the reddest part of VA, House majority leader Eric Cantor probably figured on cruising to re-election. What he didn't count on, though was that his opponent had a secret weapon: The Soggy Bottom Boys   (politics.blogs.foxnews.com) divider line 58
    More: Interesting, House Majority Leader, Eric Cantor, elections  
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4368 clicks; posted to Politics » on 24 Oct 2012 at 1:00 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-10-24 04:02:34 PM

HeadLever: SuperT: Taxes have zero influence on hiring.

Notsureifserious.jpg

As anything, hiring employees is typically a cost/benifit analysis. Tax rates can impact both the cost of hiring an employee and the benifit that an employee may have on the bottom line.


Does hiring an extra employee bring in more revenue than the cost of hiring the employee? If yes, hire the guy. If no, don't hire the guy. The tax is levied on the net profit, after accounting for expenses, such as a new employee. It's possible that the net is negative (expense > income), even after hiring, and was even more negative before hiring. In that case, a higher tax rate is meaningless since there's no profit.
 
2012-10-24 04:06:19 PM

HeadLever: Gaseous Anomaly: Also because taxes are levied on profits,

FICA would like to have a word with you.


The FICA, SDI/SUI, medicare, and all other payroll taxes are part of the expense of hiring. Use the 1.3 multiplier to determine total expense of hiring an employee: take employee's given salary ($1000/week.) Multiply by 1.3 to $1300/week. That's the expense to the company. There's other expenses that incur when one hires an employee, but that all goes to the total cost. If you're an employer and you're not familiar with those items and think that if you hire someone at $1000/week, you only have to pay $1000/week, then you're not a real business person.
 
2012-10-24 04:09:31 PM

dericwater: The FICA, SDI/SUI, medicare, and all other payroll taxes are part of the expense of hiring.


Correct. However, this tax is not levied on profit, which was my point. In the end, this is a cost of buisness that is independent of profilt.
 
2012-10-24 04:13:01 PM

dericwater: Does hiring an extra employee bring in more revenue than the cost of hiring the employee? If yes, hire the guy. If no, don't hire the guy.


Are you crazy? If the hiring increases your (gross) revenue but lowers your bottom line, you would be mad to hire this employee.

You need to consider both the cost and the benifits of what this employee will impart on your buisness.
 
2012-10-24 04:27:40 PM

HeadLever: dericwater: Does hiring an extra employee bring in more revenue than the cost of hiring the employee? If yes, hire the guy. If no, don't hire the guy.

Are you crazy? If the hiring increases your (gross) revenue but lowers your bottom line, you would be mad to hire this employee.

You need to consider both the cost and the benifits of what this employee will impart on your buisness.


Suppose it lowers your bottom line, but gives you an extra 4 hours a day at home, so you're not at work from 8AM to 10PM every day. You might be willing to trade a lower net profit for a rational work-hours. Or, it could give you time to work on expanding your business so that maybe in 3 months, or a year, your revenue will double. All those factors come into play. The tax part is usually the least of it, since there's no uncertainty in it.
 
2012-10-24 04:44:15 PM
How DOES this guy continue to get elected? He can't be actually doing the public's business, he spends more time Farking Obama than the first lady!
 
2012-10-24 04:57:37 PM

dericwater: Suppose it lowers your bottom line, but gives you an extra 4 hours a day at home, so you're not at work from 8AM to 10PM every day. You might be willing to trade a lower net profit for a rational work-hours.


Very true. Sometimes that 'benefit' part is more than just money. And I'll also agree that taxes are typicallly not the most important item in this regard. However, my point was arguing against the notion that it has zero impact.
 
2012-10-24 05:12:33 PM

DonQuixote314159: [i.imgur.com image 750x563]

Is you is, or is you ain't my constituency?


Came for this meme. Leaving satisfactified.
 
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